MINT HILL, NC – It’s a New Year and the real estate market is still red hot. While it may have cooled a bit since the summer, it’s still very hot and the cooling only seems seasonal. With the lowest 30-year fixed mortgage rate in November, it’s a bit easier to buy right now than in the past.
Many real estate experts have made their predictions for 2022, as well. Let’s look at what can be expected with home prices in 2022.
The Market Will Continue to Surge with Gains
Several experts across the country believe the market will continue to surge with gains. Some believe the big cities may see a surge again, while others think the surge will remain in the suburban areas.
Its possible market values could gain 15%, in some areas. Without the necessary inventory, however, it’s harder to see the higher rates of absorption. However, several experts believe the U.S. real estate will see large growth in 2022.
A Slow Down to Home Value Appreciation
It’s really not surprising that many experts also believe that home values will appreciate at a slower rate. Fannie Mae believes the rate will be about 7.4% for home appreciation in 2022. However, the National Association of Realtors believes existing homes will appreciate at about 2.8% and new homes around 4.4%.
Experts don’t expect homes to depreciate, but they do see the appreciation rates slowing in 2022.
Mortgage Rates Will Likely Rise in 2022
It’s also not surprising that many believe the mortgage rates are going to go up in 2022. They have been sitting at record lows for quite some time. When rates are this low, they really don’t have much choice, but to go up.
While even higher rates will not stop the market from being a seller’s market in 2022, it might help the market cool off a bit.
Inventory will Remain Low
One of the main reasons the market has favored the seller so much is the low inventory. This is a trend that will likely continue, according to several experts. The market will remain very competitive through 2022. However, as foreclosures and evictions get back to normal, this could provide a bit more home supply for sale in 2022.
There are many predictions out there for 2022 and some may be spot on, while others are not. It’s important to pay attention to what is happening, but it’s also important to realize it may depend on your local market. Some things, such as rising mortgage rates may impact the entire country, but other things only impact specific markets.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | annagrangerhomes@gmail.com | www.1stchoicepropertiesinc.com
